JA - Redacted.pdf

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. Contracting Activity.

This Justification and Approval is to request authority for Other Than Full and Open Competition supporting requirements generated for the Support Equipment Program Office AFLCMC/WNZ. The contracting activity for this requirement is AFLCMC/WNKAB. The purchase request number supporting this contracting action is FD2060-20-32345.

II. Nature and/or Description of the Action Being Processed.

Due to the circumstances described herein, the activity requests authority to acquire T4000 and T4100 Engine Trailers Winch Modification Kits listed in the document using Other Than Full and Open Competition as prescribed by FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements. This action will result in the award of a new contract, which will be a Firm Fixed Price Requirements IDC contract with a basic one-year plus four (4) one-year ordering periods. Orders may be issued on this Requirements Contract for 5 years after award.

The purpose of this amended J&A is to increase the estimated contract value from to an increase of . The reason for the increase to the estimated amount is the MCT proposal came in higher than the Government estimate.

After initial review, the PCO determined that negotiations were not likely to reduce the price under . All unit prices came in higher than estimated from the Contractor’s Rough Order of Magnitude (ROM). The revised projected award date is 15 Oct 2020.

Orders can be issued on the Requirement IDC from 15 Oct 2020 to 14 Oct 2025. The increase of the estimated value requires higher level J&A approval. There is no change in scope of work.

This sole source requirement will be purchased from the following company:

MCT Industries, Inc.

CAGE: 2W88

500 Tierra Montana Bernalillo NM 87004-6551 Small Business

III. Description of the Supplies/Services Required to Meet Agency Needs.

This requirement is for the development and procurement of the T4000 and T4100 Engine Trailers Winch Modification Kit, NSN: 1730-NC-C66-3450, P/N: T4000/T4100WINCH (will be used until the permanent NSN and PN are assigned), used with the T4000 and T4100 Engine Trailers. The T4000 and T4100 Engine Trailers Winch Modification Kit provides safe removal, transfer, and installation of B-1B aircraft engines. This item is attached to the T4000 and T4100

V. Demonstration that the Contractor’s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (Applicability of Authority).

The agency's minimum needs can only be satisfied by the unique supplies or services available from MCT, Industries because they own the technical data and drawings for the T4000 and T4100 Engine Trailers. The T4000 and T4100 Engine Trailers Winch Modification Kit is a kit that can be added on to T4000 and T4100 engine trailers to support the removal, transfer, and installation of B-1B aircraft engines. The T4000 and T4100 Winch Kit Modification Kit is not yet developed, so any company this contract is awarded to would need to use both trailers to develop the winch kit or reverse engineer the two trailers. The Government does not have a T4000 and/or a T4100 engine trailer that could be loaned as Government Furnished Equipment (GFE) and reverse engineering would be prohibitively expensive. This piece of equipment is highly specialized as it will only be attached to T4000 and T4100 engine trailers for use with the B-1B aircraft engine.

MCT, Industries is the Original Equipment Manufacturer (OEM) of the T4000 and T4100 Engine Trailers. They own the technical data package (TDP) and all data rights and are identified on the design requirements and source controlled drawings. A complete TDP is required in order to develop the T4000 and T4100 Engine Trailer Winch Modification Kit due to the loads that are transferred from the winch assembly to the trailer. The Government contacted MCT, Industries via email on 30 April 2020 to inquire on their interest in selling the TDP for the 4000/4100 Trailers to the Government. MCT responded they were not interested in selling the data rights at this time.

Award to any other source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition and unacceptable delays in fulfilling the Air Force’s requirements. In order for a company other than MCT to develop and produce the winch kit, the company would need to borrow both trailers as GFE or reverse engineer both trailers.

The Government does not have engine trailers to spare due to high usage. Though this NSN has been assigned an AMC/AMSC of 2G, full and open competition, it is not economically feasible to compete this NSN because the Government does not own the TDP for the T4000 and T4100 Engine Trailers. If the Government wants to compete this NSN, the T4000 and T4100 Engine Trailers will have to be reverse engineered. Reverse engineering is estimated to cost and take 1-2 years to develop the engine trailers, then the company would have to develop the T4000 and T4100 Engine Trailers Winch Modification Kit to add to the trailers, which would take at least 1 more year, for a total delay of 2-3 years. This delay is unacceptable and could potentially ground the B-1B fleet if they cannot change their engines. The only way they can currently change engines is with the legacy 4000 and 4100 engine trailers, which are rapidly aging and being replaced with the T4000 and T4100 engine trailers. If there is a significant delay due to reverse engineering, B-1B units could lose capability to remove and replace engines, and perform maintenance and testing.

Since the Government does not own the TDP for the T4000 and T4100 Engine Trailers and does not have the expertise to build the Winch Modification Kit, the logical and most cost effective solution is to award to MCT.

Accordingly, MCT, Industries is the only firm capable of providing the requirements described in Section III above without the U.S. Air Force experiencing substantial duplication of cost that could not expected to be recovered through competition and unacceptable delays in fulfilling its requirements.

VI. Description of Efforts Made to Ensure that Offers are Solicited From as Many Potential Sources as Practicable.

A Request for Information (RFI) was posted to beta.SAM.gov on 14 April 2020 with a response date of 29 April 2020 under Notice ID FA8533-20-R-WINCH. The RFI requested responses from interested vendors that possess the expertise, capabilities, and experience to meet qualification requirements for this effort. Two vendors responded to the RFI. The vendors were evaluated for their capability and only MCT was determined to be capable based on the fact that they own the TDP and possess the capability to produce these winches.

The requirement will be synopsized in beta.SAM in accordance with FAR 5.201. It is anticipated that sources having an interest in subcontracting may be identified through synopsis.

Any source who responds to the Government as a result of this synopsis will be identified to the prime contractor as a potential subcontracting possibility.

VII. Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable.

The overall cost of this acquisition will be fair and reasonable to the Government. In accordance with FAR 15.403-3, the Contracting Officer will require the submission of other than certified cost or pricing data. Price analysis or cost analysis based on “information other than certified cost or pricing data” will be used to examine and evaluate the proposed prices to determine fair and reasonable pricing. Price analysis techniques include comparison of proposed prices to historical prices paid for a same or similar item; comparison with published price lists, offered catalog prices and prices obtained through market research for a same or similar item;

comparison of proposed prices with independent Government estimate; or analysis of data other than certified cost or pricing information.

VIII. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research was not Conducted.

Market research was conducted during 14 April 2020 and completed on 13 May 2020 in accordance with FAR Part 10.001 and 10.002. The market research techniques used are as follows:

As described in Section VI above, a RFI was posted to beta.SAM advising industry of the pending acquisition and soliciting inquiries from interested vendors. The SS/RFI was posted on 14 April 2020 under Notice ID FA8533-20-R-WINCH. 2 companies responded to the RFI. The vendors were evaluated for their capability and only MCT, Industries was determined to be capable of producing the T4000 and T4100 Engine Trailers Winch Modification Kit.

A SBA Dynamic Small Business Search (DSBS) query was conducted utilizing NAICS code 336413 and keywords “winch”, “trailer”, or “GSE”. This query produced 63 potential vendors.

None of these vendors are capable of producing the T4000 and T4100 Engine Trailers Winch Kit because they do not own the necessary technical data.

The T4000 and T4100 Engine Trailers Winch Modification Kit does not fit the definition of a commercial item as defined in FAR Part 2.101. This item is defined as military unique and is not customarily used by the general public or by non-Governmental entities. The Government requires parts that meet an exact form, fit, and function as determined by the specific mission.

There are no aircraft in the commercial market with the same or similar components.

The market research concluded MCT, Industries is the only vendor capable of fulfilling the Government’s requirement.

IX. Any Other Facts Supporting the Use of Other Than Full and Open Competition.

None.

X. List of Sources, if any, That Expressed Interest in the Acquisition

See Section VI above.

XI. A Statement of the Actions, if any, the Agency May Take to Remove or Overcome any Barriers to Competition Before Making Subsequent Acquisitions for the Supplies or Services Required.

In the ROM received from MCT, Industries on 23 April 2020, MCT stated that to purchase technical data and drawings for the T4000 and T4100 Engine Trailers Winch Modification Kit would cost . This data will be priced as an option that could be purchased at any point in the contract’s life if funds are made available. If funds are made available for the purchase of this the data, future acquisitions for the T4000 and T4100 Engine Trailers Winch Modification Kit could be competed. The Winch Modification Kit will be in service for the lifespan of the T4000 and T4100 Engine Trailers (25 years), or until the B-1B platform is retired.

XII. Certification by the Contracting Officer.

As evidenced by my signature on the Coordination and Approval Document (CAD), I have determined this document to be both accurate and complete to the best of my knowledge and belief.

XIII. Technical/Requirements Personnel’s Certification.

As evidenced by my (our) signature(s) on the CAD, I (we) certify that any supporting data contained herein, which is my (our) responsibility, is both accurate and complete.